Gold and silver are crashing here, and I'm not surprised.
I've never liked the "war = precious metals up" trading strategy, especially once everyone sees through it.
This movement is too clean and straightforward.
Too obvious.
Too crowded.
Before the real panic sets in, gold has already priced in that fear.
Then the war breaks out, and the market ignores the news.
Higher inflation risks.
Trickier interest rates.
The dollar is strengthening.
The Fed has less room to save the market.
This is a bad combo for precious metals.
Silver is hit even harder because when panic strikes, silver always masquerades as gold, and then when market sentiment worsens, it remembers it's a high-beta liquidity trade.
Now, the war premium is starting to show.
So precious metals are getting double squeezed.
First, rising interest rates.
Then, the easing of panic.
That's why I won't blindly chase an asset after it becomes the "obvious hedge tool."
By the time everyone agrees on a safe trade, this trade usually needs new buyers.
Gold has already played its role.
Late money is doing what late money typically does. #xau #BTC #币圈巴菲特
I've never liked the "war = precious metals up" trading strategy, especially once everyone sees through it.
This movement is too clean and straightforward.
Too obvious.
Too crowded.
Before the real panic sets in, gold has already priced in that fear.
Then the war breaks out, and the market ignores the news.
Higher inflation risks.
Trickier interest rates.
The dollar is strengthening.
The Fed has less room to save the market.
This is a bad combo for precious metals.
Silver is hit even harder because when panic strikes, silver always masquerades as gold, and then when market sentiment worsens, it remembers it's a high-beta liquidity trade.
Now, the war premium is starting to show.
So precious metals are getting double squeezed.
First, rising interest rates.
Then, the easing of panic.
That's why I won't blindly chase an asset after it becomes the "obvious hedge tool."
By the time everyone agrees on a safe trade, this trade usually needs new buyers.
Gold has already played its role.
Late money is doing what late money typically does. #xau #BTC #币圈巴菲特